Nevada Governor Jim Gibbons said falling casino revenues are forcing the state to brace for an economic shortfall during the current fiscal year. The announcement came shortly after state lawmakers met during a special session to address a $1.2 billion shortfall for the upcoming fiscal year.

The latest report from the Nevada Gaming Control Board showed the gaming win at the state’s casinos was down almost 16 percent statewide in May. Revenues on the Strip were down nearly 16 percent as well. It was the second worst month the state has experienced since September 11, 2001.

June numbers haven’t been released yet, but a statement from the governor that the state’s take for the month was $19 million less than last June suggests that the numbers from May were not an anomaly, but part of a trend.

“This is an incredibly difficult time for the state of Nevada, and it appears that we may need to prepare for an additional shortfall to our General Fund for the fiscal year that just began,” Gibbons said. “We will continue to watch our state revenues very closely in the coming months to determine whether any additional reduction to state spending will be necessary to maintain a balanced budget.”

The numbers are not impressive to the governor, and Wall Street investors are not happy either, but Jim Murren, president of MGM Mirage, put the situation into perspective when he pointed out that the industry is making more money than it did in 2005 or 2006, “and we felt pretty good about ourselves then.”

By Casino Connection Staff

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